Santa Fe, New Mexico – The New Mexico Public Employees Retirement Association (PERA) is undergoing a significant transformation, shifting its focus towards private assets to enhance its financial performance and secure the retirement benefits of its members.
In a move to diversify its investment portfolio, PERA aims to allocate a larger portion of its assets to private markets such as real estate, private equity, and infrastructure. This strategic shift comes at a time when traditional stock and bond investments are facing volatility and uncertainty.
By increasing investments in private assets, PERA seeks to generate higher returns and reduce the overall risk of its portfolio. Additionally, the association aims to align its investment strategy with the long-term financial goals of its members, ensuring the sustainability of their retirement benefits.
The decision to rely more heavily on private assets is driven by the desire to adapt to the evolving investment landscape, as well as the need to address the association’s substantial unfunded pension liability. By diversifying its portfolio with private investments, PERA hopes to achieve greater stability and resilience in the face of market fluctuations.
While this shift represents a departure from traditional investment approaches, PERA’s leadership is confident in its potential to deliver improved financial outcomes for its members. The decision reflects a proactive and forward-thinking mindset, aiming to position PERA for long-term success in an ever-changing financial environment.
Overall, PERA’s move towards private assets marks a pivotal moment in its history, signifying a strategic pivot towards a more dynamic and adaptive investment approach. As the association continues to navigate the complexities of the financial markets, its commitment to securing the retirement future of its members remains unwavering.